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Strategies & Market Trends : Speculating in Takeover Targets -- Ignore unavailable to you. Want to Upgrade?


To: richardred who wrote (2011)9/29/2009 12:33:31 AM
From: richardred  Respond to of 6147
 
Griffon Corp (GFF) is a holding company with three unrelated businesses, all of which are about the same size in terms of sales. Their Clopay Building Products is a residential garage door manufacturer. Clopay Plastics Products sells specialty plastic into a broad array of markets, including baby diapers and surgical gowns. Telephonics, which is actually growing due to homeland defense and border security, makes radar equipment that is sold globally. The company raised a war-chest with a rights offering last September ($246mm) at 8.50, selling to an affilliate of Goldman Sachs (GS), which subsequently reduced its stake rather dramatically to a still substantial 17%. While they certainly enhanced their balance sheet, they doubled their share-count. In a strange governance twist, the CEO, who joined in 2008, is the son-in-law of the Chairman-of-the-Board and had previously served as President for Wynn Resorts (WYNN). He joined with a golden parachute package that pays $13mm. Seems like the CEO might have been brought in to get this one sold. He also owns 2% of the company. Here is a link to their website.
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